Spotlight: "Silver bullet" in absence, "China prescription" to global challenges under limelight in Davos

Davos used to be a destination for lung disease patients for its pleasant microclimate. But it gradually lost charm after the invention of penicillin.

Now, a new "penicillin" is needed to address such global challenges as laggard economic recovery, regional conflicts and terrorism, Chinese Premier Li Keqiang said here Wednesday at the annual meeting of the World Economic Forum (WEF).

But as a magic healer is not readily at hand, the suggestions and actions of China, the world's second largest economy, can be a timely injection of confidence and encouragement for the world to stay healthy and composed.

CHINA PRESCRIPTION

The world is filled up with uncertainties, and at the same time full of hope, Li told his audience.

China calls for safeguarding peace and stability in facing complicated international situations, Li said, adding that effective and widely-recognized international orders should be guaranteed rather than breached, or "prosperity and development are just out of the question."

China believes that different cultures, religions and peoples should respect each other, learn from each other and be tolerant, Li added.

Meanwhile, Li noted that China calls on countries to promote opening up and innovation, strengthen international coordination at macro-economic levels when formulating policies in accordance with their own national conditions.

All countries should oppose protectionism and expand regional economic cooperation, Li said.

The international community is advised to vigorously advance structural reforms, join forces in the innovation drive, and be ready for the coming of a new revolution of science and technology.

CHINA PLEDGE

During his speech, Li admitted that the Chinese economy still faces relatively large downward pressure in 2015, but vowed that the country will stay composed in its strategic development and not flood the economy with money.

More attention, said the Chinese leader, will be placed on the preset adjustment and fine tuning of the country's policies, as well as directional regulation and control, so that economic operation will be within a reasonable range.

China will also promote the liberalization and facilitation of trade and investment, and further open up the service and capital markets, as well as the central and western part of the country, Li said.

When meeting with representatives of the WEF's International Business Council, Li also vowed to advance China's comprehensive reform and open the country wider to foreign investors.

China will continue to push ahead with its reform in key areas in 2015, with the priority being properly handling the relationship between the government and the market, Li said.

He promised that China will carry out deeper and wider reform in its administrative approval system to stimulate market vitality and create a better environment for fair competition.

China, Li said, will also promote the development of inclusive finance, develop multi-level capital market, support small and medium-sized banks and private banks, and lower the corporate leverage gradually through the development of the capital market and direct financing.

China will advance its ongoing reform in fiscal, tax and key financial areas, Li pledged, adding that his country is to further relax foreign investment access and open its service industry wider to the outside world.

CHINA CONFIDENCE

Li ruled out the possibility of a regional or systematic financial risk in China, and reaffirmed that the Chinese economy is not heading for a hard landing.

He also dismissed external worry about China's local government debts, saying such debts are mainly spent on infrastructure construction, thus are well-guaranteed.

Moreover, adjustments in China's real estate market in a certain period are "normal," Li said to participants of the International Business Council meeting, citing reasons including the country's steady urbanization drive which will unlock huge housing potential, and its deepening efforts in rebuilding the sprawling and dilapidated shantytowns.

"The hard housing demand in China's property market will be durative," Li reassured. "It will drive the development of related industries and product supply."

Li was commenting on the slowdown seen in China's once-sizzling property market since the beginning of last year, which has triggered concerns about a burst of the real estate bubble in the country.

During a State Council meeting in last October, Li vowed to stabilize housing consumption, improve affordable housing projects and relax lending rules, indicating that the government is loosening its grip on property market policies.

In Davos, Li also said that the Chinese government attaches great importance to shadow banking and has taken related measures to put the problem under its supervision. Endi